first win, usa air long. >> dow up 91 points. a quick look at ibm before we head out of here as well. adding an additional $15 billion to the buyback. that stock was off to the races the minute that news came out it's accounting for about 25, 208 of the dow's 92 points. "power lunch" picks up that story now. >> "halftime" is over. the second half of your trading day begins now. >> obama care, a deep dive this hour and things just got a little bit worse for the white house after an nbc news report saying the president did know that many people would lose their health insurance plans. those plans would basically be canceled. our big question today, what does this all mean for the so-called cadillac plans, these are very good plans sponsored by employers, will costs increase? could they go away? what's going to happen to them? and do the higher costs of obama care and the other issues surrounding it, will democratic

congressmen start cracking, breaking with the white house? change their minds, go against obama care. sue is down at the nyse. hi. >> hi. we begin with breaking news, but not here at the nyse. at the nasdaq. seema moody is there with the latest on trading glitches and halts earlier today. what's the latest? >> sue, the nasdaq indexes have resumed trading after an unusual halt where the nasdaq composite, the nasdaq 100 among other nasdaq specific indexes were not updating. stocks on these indexes were not impacted. the nasdaq says it was an issue with its global index data service 2.0. apparently this feed experienced a brief disruption of service, but since then, has recovered. the nasdaq says it continues to investigate the issue. again, no equity exchange operations have been impacted but this is still something that traders are watching, especially in the options market. sue that's the latest.

>> seema, thank you very much. we turn to obama care now because it is taking center stage on capitol hill today. the administrator of medicare and medicaid services testifying before paul ryan's house committee on ways and means. bertha coombs monitoring that committee hearing all day. where do we stand? >> it just ended at at the top of the hour. marilyn apologized for the rocky rollout in her opening statement but didn't keep her from getting grilled. at times on the failings of the website but republicans on the committee more often hammered her on the issue of insurers dropping plans in the individual market because of obama care rules. she repeatedly insisted it's the insurer's decision. >> do you know if it's true, as the president has said and many democrats have said, if you like your health care plan, you can keep it. is that a true statement? >> there were health care plans

that were grandfathered in. >> is that a true statement. >> it is a true statement. >> some congressmen telling her that's a lie. some democrats went on the offensive like bill pass ka rel who stood up to defend parts of obama care like mandatory coverage with preexisting conditions, leading to a ts testy exchange. >>. >> you're going to tell the parents of those kids which one of you is going to stand up and tell the parents of those children the game is over, sorry, that was just a phase. >> gentleman yield? >> yes, i will. >> it's a false choice to say it's obama care or nothing. there are numerous proposals including the one that i'm a co-sponsor off. >> i yield back. take back the time sir. let me take the time back. are you serious what you just said? are you really serious? after what we have gone through and what we've gone through in the last three and a half years? have you -- you can sit there

and say, that you had a legitimate alternative after these years? we've gone through 44 votes. 48 votes now. of you trying to dismantle the legislation. you call that cooperation? >> well, marilyn tavernner was being questioned, republicans taking aim at the white house with their questions today. tyler this is just the warmup act. bill going back to the neighborhood in patterson, new jersey where he comes from, bringing a little patterson. >> scrappy. >> thanks very much. >> nbc news chief investigative correspondent lisa myers broke a story on cnbc.com on how president obama knew that millions of people would, in fact, lose their health care coverage, once his plan went into effect. this comes despite numerous statements to the contrary. >> if you've ever tried to buy insurance on your own, i promise you, this is a lot easier. it's like booking a hotel or a

plane ticket. >> you're going to be able to choose your doctor and not have to go through some network in an emergency situation. >> if americans like their doctor they will keep their doctor and if you like your insurance plan you will keep it. >> if you like your current plan, you will be able to keep it. >> if you like your doctor, you will be able to keep your doctor. period. >> lisa myers reports that half to 75% of the 14 million americans who have bought insurance individually will actually see cancellation letters in the next year because those plans don't measure up to the standards embedded in the affordable care act. so that brings us to a cnbc/obama care fact check. michele carew uso-cabrera back again. >> talk about the obvious when you highlighted the promise made if you like your plan you can keep it. nbc news investigative unit reporting millions of americans

who purchased individual plans are finding that is not true. they are getting cancellation letters saying their individual plan does not meet the new standards. nbc news reporter lisa myers says the white house knew for years this promise would not be true because the way the regulations were finally written, many individual policies would not be grandfathered in as originally planned and as the president reiterated on february 25th of 2010. >> any insurance that you currently have would be grandfathered in so you could keep. and so you could decide not to get in the exchange the better plan, i could keep my acme insurance, just a high deductible catastrophic plan, i would not be required to get the better one. >> more affordable coverage is the other promise made. all over whitehouse.gov to this day, right now you can look, not only does it say you can keep your plan, there are repeated references to more affordable coverage. once again, nbc news's

investigative unit reports millions of buyers of plans are finding out that will not be true. at cnbc.com you can read about people who have seen their premiums double, triple, quadruple to pay for the increased coverage requirements. yet, here's what the president said. again, february 2010. >> if i chose to get the better one, it would be 14 to 20% cheaper than if i were going into the individual market. i just wanted to clarify that. >> for the poor, the costs will be lower because of subsidies. but the white house website to this day makes it sound like everyone will get affordable coverage. number three, you can't be denied because of a preexisting condition and you can't be dumped by your insurance company. those are going to be true. they're being used today during the hearings as justification for one and two. people once they can sign up for plans, they don't necessarily if they have a preexisting condition, they won't be denied. keep in mind, tyler, this is why more affordable coverage doesn't necessarily turn out to be the case. >> has the president addressed

the question of these statements where he said if you have a plan you can keep it, doctor, you can keep him or her? has he addressed why he came to say those things? >> not at this point. it's been -- we've heard the hearing today where the woman -- >> any idea what he meant when he said it? did he mean it literally to be that? >> he said it so often tyler, if you like your plan you can keep it. no one will take it away from you, period. i mean, taking that out of context? >> i don't know. it sounds like there's explaining that needs to be done here to explain what exactly he was saying when he said those things. repeatedly. >> i think it's self-evident. >> pretty clear to me on the surface. >> while americans -- thank you very much. i beg your pardon. americans wrestle with what to do we have found several people already caught up in the mess. let's hear from them directly. listen in. >> obviously by now we all know that what we were promised in the plan is really not what we're getting. we were supposed to get cheaper plans with better coverage and

in reality, particularly at least in my case, i'm getting a lesser plan because i very well may not be able to keep my doctors or drug formulary and i'm paying 65% more for the privilege. >> they gave me until november 1st, which is only a few days away, to make up my mind if i wanted to try something -- get another plan, but the problem is, the website is down until the end of november. >> john harwood at the white house today. john, be the question for you, is there going to come a point where some of the democrats who have been standing firm alongsides the president in defending obama care will begin to peel away and see this is not a good deal for them politically? >> sure. there could come that point, especially if they can't get these exchanges working right. that's really the key question, can they, in fact, get the website up by november 30th as

they've said, in time for people to buy the coverage that law requires them to have in 2014. if they can't get that working, and people can't get that coverage, that is a betrayal of the core promise of obama care and that would be the point at which you would see democrats peeling off. i think this is a problem, the one you and michele were discussing and the white house was telling a part of the truth, not the whole truth, and they set out by design to change the individual market and the president didn't really love with people about what was going to happen on that market because a whole lot of changes have come to pass. in response to your question earlier, tyler, i think the predominance of what the president was talking about, employer based coverage as most americans do, you would be able to keep that unless the employer dropped it. that is the case. those of us at nbc or other large companies who have health insurance, this, the obama care

new rules don't affect us because our plans meet those rules. it was by design they raise the standards in the individual marketplace, knowing that that would take a lot of the plans inexpensive with high deductible that essentially served the interest of young healthy people because middle hp aged and not healthy people can't buy them, that was done on purpose and didn't tell the whole truth about it. >> yeah. it sounds to me like what he was saying there was far more absolute and less nuance than if you have a corporate plan -- >> you're right. >> your company is paying for, you're going to be able to keep, and your coverage, you will be able to keep it. >> you're right about that. >> his statements seem to be broad, if you have insurance you like you can keep it. i wonder if the white house is going to come out or he's going to have to come out and explain those statements more directly? >> there's no question he's going to have to do that. jay carney is going to brief in a few minutes. he's going to get hammered with these questions. this is a case the white house did not prepare the american people for what their vision of

the law was going to be and now that it is colliding with the poor rollout of the nonfunctional website, this entire thing is looking like a mess and they have to fix it. if they can't fix it, we're not going to have the law. >> john harwood, thanks very much. we have had one person at cnbc today dedicated to getting a comment or a representative from the white house to come on and talk about obama care. he sent three e-mails and three calls and the white house got back to us about 20 minutes ago saying that no one was availablep for our air time. we should note over the past three weeks the white house has approached us twice about having senior communications adviser david see miss on "power lunch" to talk about obama care and we did have him on both of those times. bertha coombs back with us. how is this playing out with the insurers because the insurers have a big stake in this. the insurers basically bought into the idea that they were

going to have 35, 40 million new customers to whom they could sell insurance. >> they bought in cautiously kind of anticipating that things were not going to go smoothly and today really insurers are trading lower, aetna reported disappointing results and cautious about 2014. the insurance giant missed on the bottom line posting earnings of $1.50 a share, despite reporting revenues slightly ahead of expectations. among the drags higher medical costs in medicare business in particular due in part because of government funding cuts. ceo mark bert linney didn't expect to see an increase in individual enrollment next year which is interesting because he and aetna is on 17 of the exchanges that are on the federal exchange. wellpoint on a dozen of them. all trading lower and hit by this issue of higher medical loss ratios. united is the outlier today and united is the most cautious of all. >> been the one that's held back the most. >> they've held back.

only on a handful of state run exchanges. don't have any exposure on the federal exchange. >> thanks very much. thanks for your good work on this. >> dan mangan covers health care for cnbc.com. you know, dan, i sense there is, obviously, a growing level of outrage here. i think people feel like they were based and now switched. >> yes. absolutely they were. you play these clips repeatedly, the president, there is no nuance there. he said if you want to keep your plan you can. you clearly can't. i think all the explanations are trying to gilled a sour or stale lily right now. >> there is the matter of the so-called cadillac plans that i don't know whether comcast, the owner of cnbc, has a cadillac plan, but these are comprehensive, he expensive. >> lot of benefits. gold level benefits. >> now what's going to happen to those cadillac plans? >> something is happening to them now. there's going to be an exercise tax that kicks in 40% now, on

any benefits, premiums paid over $10,200 for individuals, $27,500 for families. so that exize tax kicks in four years from now. employers are shifting costs to the covered people to employees like ourselves and making them pay more in anticipation of that exized tax kicking in. >> if the net cost, in other words, to the company is greater than that 10,200 or whatever it is -- >> pays 40% on top of that. >> the employer pays that. they would figure in the costs they pay to the insurer to cover me. >> that's right. >> and figure in or reduce that amount by the amount that i pay per month. >> one way to address it. >> that i pay in typical deductions. >> overall trend in the industry to shift costs to the employee. >> we know that. >> and this is exacerbating that. >> this is happening for years in the private sector. >> you know, in fairness to the administration, an effort to contain costs to make people aware of what they're paying

for. >> one of these things, goes back to the question of whether a health care plan ought to be considered income to the recipient or not? >> well that's another reason, yeah, this goes back to an anomaly where you don't get taxed we don't get taxed on our benefits. >> they -- >> the costs. >> every other form of compensation gets taxed and this is an anomaly. >> what congress is saying, we'll spot you the first 10,000 and not include that as tax but anything above that amount for an individual, would be subject to this exize of 40%. >> again, it's not only a question of income tax or tax, it's a question of containing costs on the back end to make sure that people are not getting willy-nilly tests they don't need. >> i've gone 40% over the time allotted to this. i'm going to get scolded, spanked. down to you. >> let's go to dominic chu for a market flash. >> activist investor star is asking semiconductor to consider

selling or restructuring its mobile amplifier business which it says is dragging down the chip price. star board value said the company should focus on networks and defense units like skyworks solutions. the mobile power amplifier business accounts for 65% of the company's revenues. triquint not a immediately available for comment. >> nickel and diming your way to record revenues. the airlines masters at that, right, phil? >> sue, in the last three years the airlines have practically doubled their ancillary revenue take. what will surprise you is just how much they're collecting this year. sue? >> that straight ahead. and wild weather take a look at this. this is whipped up 100 foot wave and for two surfers, it proved just too much to resist. it did not end, however, with cheers of totally awesome. that straight ahead. that's a 100 foot wave. back in a minute. clients are always learning more

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welcome back to "power lunch." we completed at the top of the hour $35 billion auction of five-year notes. i gave it a c-plus. where you looked it was average. the plus where did the plus come from? priced within the bid offer of the one issued market right before 1:00 eastern. as you look at the charts whether it's a one day or two day, you can see the five-year hasn't had a lot of movement.

three basis points low to high range over two days but when you open the chart up this is the curve and it is hovering at the lowest yield should it close here since 19th of june. but the big award today for volatility goes to the euro. before 11:00 eastern, governing council member new watney said i'm paraphrasing looking for a negative deposit rate or lowering the main rate to hurt the euro which is too strong you have to look elsewhere and it took a ding out of the euro versus many of the major currencies including the dollar. sue, back to you. >> thank you very much. check out the airline stocks because they have been soaring, no pun intended. it's not just their stock price flying high. the revenution hitting record highs as well. however there's a catch. phil lebeau is here with what that catch is. over to you, phil. >> sue, we're obviously paying more in terms of fees and the ancillary revenue growth for the airlines is staggering. tracks this and look at the growth over the last three

years. it was just $22 billion worldwide in 2010. this year, the airlines worldwide are expected to bring in $42.6 the greatest region is here in north america. well ahead of their counterparts around the world. major u.s. airlines collecting $14.3 billion in ancillary revenue this year with bag fees now bringing in more than $10 billion worldwide and oh, by the way, the airlines are looking for new ways to actually make you pay for checking that bag. >> when you charge tickets to a credit card, in effect, the bank has entered into a relationship with the airline to cover those fees. so there's more finessing going on in terms of bag fees. so there hasn't been a lot of growth there. it's just the airlines are changing how they are aseeing those fees. >> new ways to make you pay.

25% of the ancillary revenue that airlines collect is from those bag fees, but the bigger perk from the frequent flyer programs where they sell miles to the credit cards or to retailers and they then use those to bring you in. you see, on board services such as getting on board early, 10%, and then travel services like if you want to do a rental car brings up 5%. quickly want to show you shares of jetblue and why showing you jetblue they posted earnings, q3 a penny short of estimates but this stock, tyler and sue, is close to an all-time high. no surprise, the airlines all continuing to move higher because of that fee growth. >> all right. phil, thank you very much. this may affect air travel at some point. for the first time since 1959, a giant volcano in eastern russia has begun to erupt. ash has been rising some three miles into the sky and it is drifting and you may recall the volcano in europe several years ago disrupted air travel quite considerably.

further west, europe is being hit hard by a terrible series of storms. watch the wind rip away the scaffolding in den mark. wind gusts ran up to 120 miles per hour and if you are flying to europe today, call ahead because there are flight delays from england deep into the old continent. ty, that is pretty dramatic. >> just amazing, wow. talk about amazing, that storm caused this wave in portugal. look closely you can see a surfer, not a video trick, a surfer in that wave. estimated to be one of the biggest waves ever surfed. 100 feet. that surfer was okay. a young woman from brazil who was surfing with him was swept under the water and knocked unconscious. rescue workers were able to get her out to the hospital. she is now reportedly fine. but it is a lesson to anyone else in the world, if you're tempted to do that, know the risks, sue. >> absolutely.

that's just crazy. but, you know, human nature, i guess. bernanke and company meeting today to discuss rates and health of the economy. steve liesman has data on where economists stand on growth and the holiday shopping season. >> we're surfing the treacherous economy right here. more quantitative easing you think more growth. think again. the cnbc fed survey when "power lunch" returns. my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors,

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some numbers for you to keep in mind with the dow up 85 points, the dow's intraday high today is 15709.58. a record close today would be 15676.94. we're up 85 points on the trading session. it's interesting because today marks the 84th anniversary of black tuesday, the most devastating stock market crash in history. billions of dollars lost in this day in 1929. but, as the markets currently continue to reach new record high, many investors are holding cash on the sidelines. we wondered whether people still fear another catastrophe. joining us is bp and kenny polcari director with o'neill securities. kenny, you and i both were in this market in 1985. >> that was a picture of you. you were a runner back then.

>> i was 29. stop it. i covered 1895 at that point, working for financial news network. >> 1987. >> you were a broker for two years, right? >> 26 years old. >> it changes the way you think of the market forever, doesn't it? >> it does. it took a long time, especially i was just really brand new, right? i was 26. so i was just getting my feet wet when that happened and so i remember going home and saying to my wife, i think it's over. like i -- like when i went home that day, it was devastation, right. it took some time to rebounce, to get your confidence back again and i think that's what's happening now after the crisis we lived through, it's taking time. a lot of people have cashed in but -- >> wait. i have breaking news from dominic and bob, to you. >> it concerns jpmorgan. >> absolutely. you want to call your attention to shares of jpmorgan because what you've seen is an intraday drop. we're not talking a huge amount but intraday it is a large amount. see on your chart there on the

middle to right-hand side, this on headlines from "the wall street journal" that jpmorgan's $13 billion proposed deal with the justice department is at risk of collapse. this according to, again, "wall street journal" sources. also saying that this is, again, over disputes over the fdic's fund and its role there, the criminal probes could scuttle a deal those sources say. justice department lawyers are fighting jpmorgan's plan to offset any of these kinds of payments with those fdic fund moneys. again this according to sources from "the wall street journal". we are following up on this story and bring you more details throughout s the course of the afternoon. we are seeing a reaction in jpmorgan on this wall street journal report. >> dom, let you work that story and get back to you when details warrant it. bob, you know, once you've seen a percentage move to the downside like we saw in 1987, it

changes your perspective. >> i think the point about '87 things turned around quickly. the next day, the federal reserve in new york opened the lines and said, give lines of credits and that turned things around. it was short lived phenomena. the 2008 crisis, though, we're still seeing the effects, people withdrawing from the stock market, the lack of confidence in the market and a sense of what happened in 2008, far far worse than what happened -- >> i think in 2008, it was everything that collapsed and 1987, it wasn't housing that collapsed and everything else that collapsed. just the market. i remember standing here in 1987 and dix grasso like the bat phone to the fed, standing there with all the open lines, you know, constant conversation. but yes, that happens? >> 1929 on this day, the dow's drop was 30 points, that was 12% of the dow. the dow went to 230 and the low all-time low was 41, the dow hit 41 in july of 1932, right?

>> july of 1932 the dow hit 41. that was the bottom. >> this week kenny and i will talk basically on our on-line program about there is some warning signs you need to know for your portfolio. so i just threw that at you. you didn't know that's what we were going to do but that's what we're going to do. thanks. appreciate it very much. >> ty, up to you. >> the fed is, of course, kicking off a two-day meeting on interest rates and the monetary policy. not much expected in terms of rates or quantitative easing, the bond buying program. the fed's growth outlook will be the one to watch. what are most economists expecting? steve liesman is here with the results of our exclusive cnbc fed survey. what does it show? >> a big change in the outlook for quantitative easing. people think it will go through 2014 instead of ending in june. taper doesn't start until april, add another $300 billion. >> they didn't add anything to growth. take a look at the growth forecast of our 40 respondents

here from wall street here. here's the actual numbers over the past. you can see we've averaged 2%. here's the big downturn, the recession of '08/ '09. for this year 2013, looking for 1.9%. just 1.9. next year, still have hope in the pick-up of 2.5%, but that's not changed from the prior surveys when they expected less quantitative easing. one thing you may want to know is that take a look at average here, 2.3% over the past five years here since we began growing and you can see not much change from that average. and then 0.3% is the deduction for the fourth quarter that economists are expecting from the shutdown and the debt ceiling debate mostly from uncertainty. there you go there. holiday sales expectations. just threw in a question on what was expected. not a lot of conviction here. worse slow growth, the same as last year. i don't know what that says right there. it's about even in terms of not expecting much in the way of

holiday sales this year, about even between the two. u.s. recession probability has been cropping up and you can see here, one, two, three months in a row from that low of 15.2%, the chance of a recession in the next 12 months. just take a look here. this was august 2011, 36.1%. down to here, 15.2. still below the average but maybe something worth watching, perhaps a result of the shutdown. one of the biggest economic concerns, well it's not europe anymore, tax and regulatory policies, slow job growth, european recession and a rise in interest rates are the top four. finally here's what stewart hoffman had to say about the coming holiday season. 2 million more employed, high house and stock prices, and lower gasoline prices drive holiday sales higher, says a confident stu hoffman. however, lynn reeser says monetary policy can inflate policies but have little impact on spurring more job growth. we'll talk about people's

perceptions of janet yellen, seen as more dovish as ben bernanke and what areas is she better or worse? >> but the bottom line here is what has changed is the expectation about quantitative easing but no change in growth forecast. >> you could argue that growth numbers would be lower without the qe but after a while that counter factual argument gets a little old. >> steve liesman, thanks very much. sue? >> ty, barney's backlash and macy's mess. both retailers accused of racial profiling. the extent to which retail is watching you. let's check jpmorgan stock once again. with the basically dow jones reporting that jpmorgan's $13 billion deal with the justice department is at risk of collapse. the stock has come off of its worst levels. it was down a half a percent. right now down just under a half a percent at 5243. we'll talk more about this still developing story when we come back. ♪ norfolk southern what's your function? ♪

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talk a little bit more about what obama care means for employers and to do that we're joined by michael farr, president of farr miller in washington and jack brewer is

founder and ceo of the broour group. both run their own investment firms, small businesses and provide insurance to their employees. gentlemen, jack, start with you, how has, if at all, the affordable care act changed the way you provide coverage to your employees and do you think it might somewhere down the road? >> well, we have 29 employees, so at this time we haven't been affected. down the road there may be some issues with it. we take a different approach. my main priority is providing quality health care for my employees. so even though we pay a little more premium we actually fund about 50% of our employees' premiums. we look at that as something that we just have to work into our balance sheet and continue to provide that care. >> it's a cost of doing business to you and, obviously, under the affordable care act you would not be required to give that coverage because your business is less than 50 people, but you do it anyway. michael, how about you? has it changed what you do? will it? >> not yet, tyler.

other than how it might be affecting the economy. we have fewer than 50 people. we have 19 people. we provide the high ppo from blue cross blue shield care first i think it's called. it's very expensive stuff. we think it's a benefit that improves the culture of our firm and lets employees know we care about them. we're kind of old fashioned. if we had over 50 employees it would be cheaper for me to cansle that health insurance and simply pay the penalty. i could save several -- lots of thousands of dollars were i to do that as a individual employer. it still has a lot of bugs to be worked out for smaller employers. >> say you got to 49 employees, would you not hire the 50th if you needed him or her? >> no, i wouldn't, because as you can see i've already made the decision to provide the insurance for my employees. i think it's an important benefit and they think so. i mean, if times get tight now, tyler, if we get into a tough economy and you have several

employees and you can save hundreds of thousands of dollars, literally, you as a business owner are going to have to think about doing that for the long-term viability of your business. >> move on, jack, to the question of the stock market. we are now very close to all-time highs on the dow. earnings have been eh. is this a safe market to put extra money or incremental money right now? >> i think we're approaching our true values. we've been looking outside the u.s. markets, places like china and other emerging markets but we think the values are there. we've really been focusing more on trying to find alternatives to the u.s. stock market. >> interesting point. how do you react to that, mike until jack says he's looking elsewhere thinking the u.s. market is approaching fair or my word full value? >> well, jack's a smart guy so of course i'm going to agree with jack. i'm going to say i do it -- it's how you do it. i will buy my big blue chip domestic names that trade in the u.s. i like my johnson & johnsons and

those sorts of companies, pepco and med tronnic to capture that foreign growth and participation in emerging markets. things are good. i'm here in naples, florida, we have an office here, i'm trying to hire in naples, florida, and it's not easy in this market. so, you know, markets are doing well. valuations are high. stocks aren't cheap, tyler. i like that term fully valued. >> one of my favorite places, naples, florida. that downtown in naples -- >> come on down! i got a job for you, tyler. >> don't tempt me. i'm very happy right here. folks, thank you very much. jack, good to see you. sue, down to you. >> let's go to naples, florida. coming up next, we're getting more details now on the jpmorgan deal. is the deal with the government falling apart? that's taking the stock down half a percent. we'll talk more about that in just a moment. tdd#: 1-800-345-2550 trading inspires your life.

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welcome back to "power lunch." a check on what's happening with shares of jpmorgan. the banking giant, of course, in the headlines after a dow jones report saying that a proposed $13 billion settlement by jpmorgan with the u.s. government is in danger. this according again to dow jones sources. watching those shares, we did go as low as about $52.26 per share. also worthy of note, trading volumes in jpmorgan have picked up about 4.5 million shares have traded in the last 20 minutes. sue, that's about a third of today's daily volume in just the last 20 minutes. back over to you. >> yeah. just to elaborate a little bit, you mentioned this earlier, dom, but the dispute centers on differing versions of what jpmorgan purchased when it

assumed washington mutual durings the financial crisis. so that's the issue and art cashin just came by and said the market is getting edgy even though up 93 points. lot offer in jusness over jpmorgan and over retirement. if it wasn't already difficult saving for retirement add in the soaring cost of health care which we've been talking about. financial planners are having to wear two hats. cnbc's sharon epperson is here with more on that. scary situation. >> it is a scare cree situation for some financial advisors because many have been focused on investments and now having to deal with the changing health care landscape. the big concern is many employees are facing the fact that their companies are changing or at least they plan to change their retiree health benefits. a study out this month from towers watson found that employers that sponsor retiree health plan, about 40% plan to discontinue it in 2015 and that

is for people who are before the age of 65 retiring or retiring after that age. and as a result, health care planning is becoming more ecertain to determine what your retirement needs will be. how do you find advice? eleanor blaney the consumer advocate at the board of standard said it's important to look for someone who has a 360 degree view of health care options and understands risks and tax consequences. you may want to look for someone who has the cfp designation, certified financial planner designation requires that they have training in comprehensive financial planning not only making investment decisions. for more on retirement planning go to cnbc.com. sue? >> thank you very much, sharon. the upscale retailer barney's facing heat over alleged racial profiling, macy's under fire, now both are facing probes. and the level that retail goes to watch your every move. you're going to be shocked. we'll talk about it. "power" is back in 30 seconds.

all right. "street signs" has a great story coming up from the san francisco bay. josh lipton is all over it. josh? >> there he is on a boat. >> we're here in san francisco bay. we're trying to solve a big mystery, what exactly is this huge four-story floating structure? it's generating a lot of buzz in silicon valley. some speculation it could be a

floating data center designed by google. a lot more of this story in "street signs." back to you. >> thank you very much, josh. where is your life preserver? put that on. the rev land al sharpton meeting with barney's ceo mark lee over allegations of racial profiling. in recent days two barney's customers and macy's customers including actor rob brown of "finding forester" say they were stopped by police after purchasing luxury items at the store. new york attorney general eric snyderman asking the retailers to provide information about their policies by this friday. here's what he wrote in a letter to macy's. quote, under state and local civil rights laws, racial discrimination in places of public accommodation including retail stores such as macy's, is prohibited. joining us is robert mccree, professor of protection management at john jay college of criminal justice. nice to have you here. >> glad to be here, sue. >> retail has a tough job. they have to fight shoplifting,

fight all sorts of issues. however, it does seem as though these situations are happening more often and we've seen three of these situation s alleging credit card fraud in the last three days. what do you make of the cases as you know them now? >> the words i heard a minute ago, racial profiling, are not appropriate to this circumstance at all. this is not racial profiling. this is reacting to transactional problems. in the two cases at barney's, the customers had debit cards that weren't processed in the way one would hope and in the third case, the one at macy's, involving rob brown, the actor, there was, again, an identification problem with him. so, there's not any attempt on the part of the retailers to single out a single race or sex

for -- >> although those accusations have been leveled against macy's in the past and they had a $600,000 settlement in that case. so what does retail need to do then to effectively protect themselves without giving the appearance of racial profiling? train sfg. >> we don't have all the facts in this case. it appears to be a transactional issue as i said. surely there are procedures that can be improved at the stores and surely there are procedures that can be improved on the part of the nypd crime prevention officers who are involved in all four of these cases. by the way, one of those cases, resulted in a stop and a questioning, but no arrest at all. but just appeared to be arrest. there went wasn't an arrest.

>> we appreciate your perspective. >> ty? >> thank you very much, sue. more on jpmorgan. is the deal with the government falling apart? what's next for jpmorgan? we'll be back in two minutes to discuss that and more as you see the stock falling down 33 cents today, but more if you look at where it was at its high earlier in the session. opportunities aren't always obvious. sometimes they just drop in.

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power run jun, thrown out what we were planning to talk about to replace it with a discussion about jpmorgan. is its big deal $13 billion with the department of justice about to collapse? that is the story that dow jones is running with. dominic chu you've been doing

reporting on this and what have you found, if anything? >> it's interesting right now. what we're looking at right now is whether or not there is any kind of real i guess truth to what's happening here about something happening on the downside for jpmorgan. we do know that trading volumes have picked up on the heels of this dow jones report. we do know that with jpmorgan, it's very much about trying to quantify what the risks to this bank are. because $13 billion is a record settlement. the proposed settlement if it were to go through. even though it's that large, investors like the idea you can put a price tag to it and move on from there. it's a percentage of revenues you move on from. with this you talk about civil lawsuits, possible criminal lawsuits in the future, you didn't know what's going to happen with losses. that's the reason the market is reacting the way it is right now. >> it's about future liability too. basically dispute centers on whether or not when they bought the liability -- when they ey immune from future al were prosecution because of the

liabilities of washington mutual and that's what jpmorgan is maintain, but -- >> they're claiming fdic should reimburse them for all the loss. you're right, sue. goes to the question of what was the understanding when they bought washington mutual? they effectively made a deal with the government where they said we'll take care of this, we'll indemnify you, not indemnify you, take care of any losses or not. jpmorgan feels there was some kind of understanding there and the government saying no, at this point you're responsible and the fdic isn't paying anything. >> the report is jpmorgan wants the fdic to shoulder some cost of the settlement which is an ironic thought that the government would be paying part of the cost of the settlement with the government. and yet, the stock even though it's down a little bit, has held up pretty dog gone well through all of these colossal settlements this company has gone through in recent months. >> i got off the phone with one of the traders who trades these, and this is a final negotiation over money.

maybe won't be $13 billion, maybe have to cough up a little more, but ultimately everybody down here feels a deal is going to get done, maybe a little more money, but still going to get done. >> reminds me of those moments as we were in the government shutdown where they said we've got a deal, and then melts away and comes back and get a deal to go. >> very good analogy. >> i know that "street signs" will be all over it here. we're going to take a quick break and "street signs" will begin right after this break. come on home, sue. >> i will. (vo) you are a business pro.

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this is cnbc breaking news now. >> and we are following through big stories for you at this hour. is the jpmorgan deal in danger of collapse? another glitch rocking the nasdaq. and the dow continues its march to an all-time high. hi, everybody. mandy is out today. the stellar kayla tausche is in with us. welcome. >> thank you. >> we will begin with breaking news because it looks like the deal between jpmorgan and the justice department is falling apart. cnbc's kate kelly has the latest. >> brian, thanks so much. "wall street journal" reporting that deal, the